Failed to connect to SSH2 server

Hi All,

I am still pretty new to both WordPress and Ubuntu. I am running the following:
Ubuntu 12.04 LTR
Wordpress 3.5.1
Apache2.2.22
PHP 5.3.10

I have the site all set up and was looking at installing themes. When I attempt to install a theme from the admin console, either on the local server or on another machine I am prompted for the my credentials.

I ran this command to install the ssh library “apt-get install libssh2-php” and I restarted apache2. I created the ssh keys and set the permissions on the key location.

I am getting a Failed to connect to SSH2 Server “servername”:22 where “servername” is my server.

Can anyone direct me to what I may be doing wrong?